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To: Les H who wrote (18337)	3/9/2004 3:18:58 PM
From: Lizzie Tudor	Respond to of 306849

He points to potential cost savings of 30 to 35 percent from outsourcing as one key driver for the explosion in outsourcing, and predicts that the field will consolidate ever more rapidly, leaving room "over the next few years for 15 to 20 reasonable-size companies." 30-35% savings? What happened to the 70% savings that Gartner said was commonplace? I've thought the BPO segment of the market has been way overhyped for some time. And cost savings probably aren't even in the 30-35% range anymore when you look at the wage consolidation that has occurred in the US. And if healthcare gets fixed here that will correct the discrepancy even more. My big problem is that startup companies and new emerging growth companies are starting up in India with US capital. That is a problem for me, but if we were just looking at BPO, on its face, I would say the US can compete.